Ramesh purchased a tractor from Mahi Limited for tilling the land but he used it during idle time for transportation of agricultural produce on hire. Some defects were developed in the engine of the tractor. He complaine

CS Executive · Economic, Business and Commercial Laws · PYQS · December 2022
Ramesh purchased a tractor from Mahi Limited for tilling the land but he used it during idle time for transportation of agricultural produce on hire. Some defects were developed in the engine of the tractor. He complained to Mahi Limited, but all in vain. Then he filed a suit in Consumer Dispute Redressal Forum for damages caused by the defects. Mahi Limited pleaded that Ramesh is not a 'consumer' within the definition of section 2(1) (d) of the Consumer Protection Act, 1986, as he is using the tractor for commercial purposes. Whether Ramesh will succeed in his case? Refer to relevant provisions of Law in support of your answer with reference to case laws, if any?

Answer & Explanation:

In the case of Bhupendra Jang Bahadur Guna vs. Regional Manager and Others (II 1995 CPJ 139), the National Commission held that a tractor purchased primarily to till the land of the purchaser and let out on hire during the idle time to till the lands of others would not amount to commercial use According to the Consumer Protection Act, consumer means any person who- (i) buys any goods for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any user of such goods other than the person who buys such goods for consideration paid or promised or partly paid or partly promised, or under any system of deferred payment, when such use is made with the approval of such person, but does not include a person who obtains such goods for resale or for any commercial purpose; or (ii) hires or avails of any service for a consideration which has been paid or promised or partly paid and partly promised, or under any system of deferred payment and includes any beneficiary of such service other than the person who hires or avails of the services for consideration paid or promised, or partly paid and partly promised, or under any system of deferred payment, when such services are availed of with the approval of the first mentioned person, but does not include a person who avails of such service for any commercial purpose. It may be noted that "commercial purpose" does not include use by a person of goods bought and used by him exclusively for the purpose of earning his livelihood, by means of self-employment. Yes, In the light of the above facts and circumstances, Ramesh, will succeed in his own case. He is still a Consumer within the definition of the Consumer Protection Act.

Topics: Consumer Protection Act, 1986

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